Restructuring looms for Brazilian construction firm

Odebrecht Engenharia & Construçäo finally admitted defeat in its attempt to avoid default on Monday, as it acknowledged that it would not be making a $11.5m coupon payment due on its $519m of 4.375% 2025 bonds, paving the way for a restructuring.

By Oliver West

29 Nov 2018

The Brazilian company, a former investment grade issuer, has been burning through cash at a rate of around $150m per quarter according to Moody’s, as prosecutors across Latin America uncover bribery payments.

As of June 2018, Odebrecht had $456m of cash compared with a debt burden of $3.1bn.